Question: this the whole question. give methe solution for question for question 3 and 4 [Table 1] Semi-annually compounded yield curve Maturity (year) 0.50 1.00 1.50

 this the whole question. give methe solution for question for question

this the whole question.

give methe solution for question for question 3 and 4

[Table 1] Semi-annually compounded yield curve Maturity (year) 0.50 1.00 1.50 2.00 2.50 Yield (%) 6.49 6.71 6.84 6.88 6.88 Maturity (year) 3.00 3.50 4.00 4.50 5.00 Yield (%) 6.83 6.76 6.67 6.57 6.45 Maturity [year) 5.50 6.00 6.50 7.00 7.50 Yield (%) 6.31 6.15 5.94 5.67 5.31 Assume $100 face value for the following problems. 1. Using the semi-annually compounded yield curve in Table 1, compute the price for the following securities: (a) 5-year zero coupon bond (b) 3-year semi-annual coupon bond with 15% coupon rate (c) 4-year semi-annual floating rate bond with zero spread (d) 2-year semi-annual floating rate bond with 35 basis point spread 2. Consider a 2-year semi-annual coupon bond with 6% coupon rate. What is its price if its yield to a % . maturity is 6%? What if it is 5% or 7%? 3. Using the semi-annually compounded yield curve in Table 1, compute the duration for the following securities: (a) 3-year zero coupon bond b) 2 (b) 2-year semi-annual coupon bond with 6% coupon rate (c) 6-year semi-annual floating rate bond with zero spread 4. Using the semi-annually compounded yield curve in Table 1, compute the dollar duration for the following securities: (a) 3-year semi-annual coupon bond with 4% coupon rate (b) 7-year zero coupon bond (7 (c) 2-year semi-annual floating rate bond with zero spread [Table 1] Semi-annually compounded yield curve Maturity (year) 0.50 1.00 1.50 2.00 2.50 Yield (%) 6.49 6.71 6.84 6.88 6.88 Maturity (year) 3.00 3.50 4.00 4.50 5.00 Yield (%) 6.83 6.76 6.67 6.57 6.45 Maturity [year) 5.50 6.00 6.50 7.00 7.50 Yield (%) 6.31 6.15 5.94 5.67 5.31 Assume $100 face value for the following problems. 1. Using the semi-annually compounded yield curve in Table 1, compute the price for the following securities: (a) 5-year zero coupon bond (b) 3-year semi-annual coupon bond with 15% coupon rate (c) 4-year semi-annual floating rate bond with zero spread (d) 2-year semi-annual floating rate bond with 35 basis point spread 2. Consider a 2-year semi-annual coupon bond with 6% coupon rate. What is its price if its yield to a % . maturity is 6%? What if it is 5% or 7%? 3. Using the semi-annually compounded yield curve in Table 1, compute the duration for the following securities: (a) 3-year zero coupon bond b) 2 (b) 2-year semi-annual coupon bond with 6% coupon rate (c) 6-year semi-annual floating rate bond with zero spread 4. Using the semi-annually compounded yield curve in Table 1, compute the dollar duration for the following securities: (a) 3-year semi-annual coupon bond with 4% coupon rate (b) 7-year zero coupon bond (7 (c) 2-year semi-annual floating rate bond with zero spread

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